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Searching 2021-2022 Session

The Vermont Statutes Online


Title 16 : Education


(Cite as: 16 V.S.A. § 3854)
  • § 3854. Operation and management of facilities

    (a) The Agency may operate and manage, or may cause to be operated and managed by any agent or operator under written contract, facilities financed under this chapter.

    (b) The Agency, in its sole discretion, shall establish fees, rates, rents, or other charges for services or products derived from facilities financed by it and no State, county, or local agency may exercise regulatory power over them.

    (c) Any financing agreement authorized by this chapter shall be a general obligation of the eligible institution and may contain provisions, which may be a part of the contract with the holders of the bonds or notes of the Agency, as to:

    (1) pledging all or any part of the monies, earnings, income, and revenues derived by the eligible institution from the facility or any part or parts thereof, or other real or personal property or revenues or money of the eligible institution, to secure payments required under the terms of the lease;

    (2) the rates, rental fees, and other charges to be fixed and collected by the eligible institution, the amounts to be raised in each year thereby, and the use and disposition of those monies, earnings, income, and revenues;

    (3) the setting aside of reserves and the creation of special funds and the regulation and disposition thereof;

    (4) the procedure, if any, by which the terms of the financing agreement may be amended, the amount of bonds or notes to which holders must consent, and the manner in which the consent may be given;

    (5) vesting in a trustee or trustees such specified properties, rights, powers, and duties as shall be deemed necessary or desirable for the security of the holders of the bonds or notes of the Agency issued for the facility;

    (6) the obligations of the eligible institution with respect to the replacement, reconstruction, maintenance, operation, repairs, and insurance of the facility;

    (7) defining the acts or omissions to act constituting a default in the obligations and duties of the eligible institution under a financing agreement, and providing for the rights and remedies of the Agency and of its bondholders or noteholders if default occurs;

    (8) providing for disposition of the facility after liabilities of the Agency incurred for the facility have been met and the bonds or notes of the Agency issued therefor or secured by the revenues thereof have been paid or otherwise satisfied; and

    (9) any other matters of like or different character that may be deemed necessary or desirable for the security or protection of the Agency or the holders of its bonds or notes.

    (d) Whenever the Agency finances a facility for any eligible institution, the eligible institution shall be responsible for the operation, maintenance, and replacement costs thereof, and the covenant to pay under the financing agreement shall be absolute and unconditional. Only if the Agency operates and manages a facility, may it assume responsibility for costs of operation and maintenance.

    (e) To obtain funds for the acquisition or construction or financing of any facilities and for other purposes authorized under this chapter, the Agency may from time to time issue negotiable bonds and notes as provided in this chapter. (Added 1966, No. 56 (Sp. Sess.), § 5, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 3, eff. March 31, 1970; 1979, No. 93 (Adj. Sess.), § 3, eff. Feb. 28, 1980; 2019, No. 131 (Adj. Sess.), § 116; 2021, No. 20, § 69.)